Twitter reports profitable quarter on back of strong global sales
- Author: Zachary Reyes Apr 26, 2018,
Apr 26, 2018, 17:28
Global revenue totaled $318 million, an increase of 53% year-over-year.
"Twitter has been busy cleaning its ecosystem and it seems the hard work has paid off".
As for Canadian data, Twitter said Q1 live streaming partnerships with top media brands such as CBC, CTV, VICE, Sportsnet and Maclean's.
Twitter has been experimenting with new ad formats, including video, which drove sales in Japan and China.
"Twitter's video ad product continues to perform well as advertisers continue to look for higher quality online video impressions", wrote Morgan Stanley analyst Brian Nowak, a long-time Twitter bear who upgraded the stock to equal-weight last week, citing improved personalisation that's keeping users on Twitter for longer. The company swung to a net income of $61 million, or 8 cents a share, in the first quarter. Now, the company appears to be finally finding its feet, as it revealed its second consecutive profitable quarter, with better-than-expected performance across nearly all metrics.
CFO Ned Segal said that it was all in the execution.
Twitter's MAUs grew a modest 3% for the quarter, hitting 336 million. Abroad, monthly active users are up to 267 million versus 262 million. Granite Point Capital Management L.P. bought a new position in Twitter in the fourth quarter valued at about $960,000. "People come to us when they're interested in events happening in the world or with a niche interest".
For example, CEO Jack Dorsey said that they are still working through a business recovery that started in Q3 of past year.
Twitter's growth comes as social-media giant Facebook deals with the Cambridge Analytica data scandal. "We do not benefit from social graphs", Dorsey said. "We serve the public conversation, so all of our data is out in the public and in the open". Changes to TweetDeck and Twitter resulted in 90% fewer fake or bot accounts.
Dorsey said that at Twitter, "we believe privacy is a fundamental right for everyone", and that he does not anticipate the same kinds of issues as Facebook. Over the last months Twitter has launched some exciting new features, such as the introduction of 280-character tweets and Threads, which have made tweets more expressive.
Much like Facebook, the service also highlighted daily active user (DAU) growth, claiming 10% year-on-year growth, although the actual DAU figure was not available in the financial results release. On Sunday, February 11 the stock of Twitter, Inc. Citigroup boosted their target price on Twitter from $25.00 to $32.00 and gave the company a "neutral" rating in a research note on Wednesday, February 7th.